Advisers Compete With Internet for Investment Advice to Participants

Among six tools or resources that
investors use to help them allocate their 401(k) investments, Internet
research and personal financial advisers tie for the most commonly
used—with 58% of investors naming each.

These are followed by
online investment calculators, at 46%, and advice from family and
friends, at 40%, according to the Wells Fargo/Gallup Investor and
Retirement Optimism Index survey. One in five investors (21%) use
target-date funds, which automate allocation based on the date investors
plan to start taking withdrawals.

Although 78% of investors who
are currently enrolled in a 401(k) say they have access to a financial
call center through their plan, only 15% say they rely on it for
allocation advice.

Majorities of investors younger than age 50
and those closer to retirement age say they rely on a personal financial
adviser. However, it is the top resource used by those age 50 and
older, while it ranks second to Internet research among those ages 18 to
49.

The vast majority of employed U.S. investors who participate
in a 401(k) savings plan view it positively, the survey found. Nine in
10 investors say they are satisfied with their own 401(k) plan as a tool
for saving for their retirement, including 44% who are “very” satisfied
and 47% who are “somewhat” satisfied. Just 9% are somewhat or very
dissatisfied.

Satisfaction is just as high among those with less than $100,000 invested (90%) as it is among higher-asset investors (93%).

The
survey was conducted January 29 through February 7, 2016, among 1,012
U.S. investors. Seven in 10 employed investors say their current
employer offers a 401(k), and of these, 88% say they participate.